Guidewire Q4 Earnings & Revenues Surpass Estimates, Stock Surges

Core Insights - Guidewire Software, Inc (GWRE) reported non-GAAP earnings per share of 84 cents for Q4 fiscal 2025, reflecting a 35.5% year-over-year increase and surpassing the Zacks Consensus Estimate of 62 cents [1][10] - The company achieved revenues of $356.6 million, a 22% year-over-year growth, exceeding the Zacks Consensus Estimate by 5.8% and surpassing its own guidance of $332-$340 million [2][10] Revenue Performance - Subscription and support revenues, which accounted for 56.6% of total revenues, increased by 33% year-over-year to $201.9 million [9][11] - License revenues (26.3% of total) rose 5% year-over-year to $93.6 million, while services revenues (17.1%) jumped 20% year-over-year to $61 million [11] Cloud Momentum - Guidewire Cloud gained traction with 19 deal wins in the reported quarter, totaling 57 for the fiscal year, including nine deals with Tier 1 insurers [2][10] - The 10-year deal with Liberty Mutual was highlighted as a significant milestone, validating the platform's maturity and scalability [3][10] Annual Recurring Revenue (ARR) - As of July 31, ARR reached $1.032 billion, up 19% year-over-year, with expectations for fiscal 2026 ARR to be between $1.21 billion and $1.22 billion [4][10] Future Guidance - GWRE anticipates total revenues for fiscal 2026 to be between $1.385 billion and $1.405 billion, compared to $1.202 billion in fiscal 2025 [5] - Subscription revenues are projected at $888 million, with total subscription and support revenues expected to reach $945 million [5] Operating Income and Cash Flow - Non-GAAP operating income is forecasted to be between $259 million and $279 million, with cash flow from operations anticipated in the range of $350-$370 million [6] - Non-GAAP gross margin improved to 67.7% from 67% year-over-year, with the subscription and support segment's gross margin increasing to 70.2% from 66% [11] Stock Performance - Following the earnings results, GWRE shares rose by 15.2% in pre-market trading, with a 34.2% increase over the past year compared to the Internet Software industry's growth of 46.1% [8]